Daily Mortgage Rates
Equally important to knowing your credit score is staying
familiar with current mortgage rates. These rates change on a
daily basis, so it’s important to check them often during your
home search. Below are several links to financial institutions
that publish their rates daily as well as the different types
of mortgages which with you should familiarize yourself.
Bankrate.com
Wells Fargo
Types of Mortgages:
- Fixed-rate: A fixed-rate loan offers a monthly payment that is
known and does not change. Most fixed-rate mortgages are for loan terms of 15 or 30 years.
- Adjustable-rate or ARM: After a predetermined initial term, the
interest rate on an adjustable-rate mortgage loan is re-set
periodically. This ensures that the rate reflects current market
interest rates. For example, a 3/1 ARM loan offers a fixed rate
for the first three years, adjusting once a year thereafter.
A 5/1 ARM loan offers a fixed rate for the first five years, adjusting yearly thereafter.
- Convertible: This is an ARM loan that allows you to convert
to a fixed-rate loan at or before a specified time. The conversion
privilege lets you start off with a low variable rate, then “lock”
the rate at a fixed amount depending on market conditions.
- Balloon: These loans often have interest-only payments,
in which case the loan principal is not reduced and the entire
loan amount is due at the end of the loan term.
These are general descriptions only. Please contact your financial institution for a detailed explanation of the mortgage types it offers.
